In a recent development, a U.S. District Court judge denied a motion filed by Binance that could have potentially hindered the Securities and Exchange Commission (SEC) from publicizing statements related to the case. The court’s intervention in upholding ethical standards seemed unnecessary, according to Judge Amy Berman Jackson, who also opined that “wordsmithing the parties’ press releases” was neither required nor appropriate.
Furthermore, Judge Jackson highlighted that the statements released by the SEC thus far do not back Binance’s claim that they would “materially affect proceedings in this case.” This comes as part of an ongoing legal dispute between the two parties, with Binance accusing the SEC of misconduct in a June 21 press release.
The SEC had previously alleged that Binance and its CEO, Changpang ‘CZ’ Zhao, engaged in the commingling of customer funds. This was brought up after a settlement deal was made to prevent the freezing of Binance.US customers’ assets in exchange for increased transparency and oversight. Binance countered these accusations, claiming that the regulator’s press release was misleading, lacked any supporting evidence, and violated professional conduct rules.
As part of this ongoing legal tussle, Judge Jackson announced hearing dates for the SEC’s case against Binance and its CEO, which includes a total of 13 charges, such as securities law violations and the commingling of user funds. Binance is set to present its defense on September 21, followed by the SEC’s counter-argument on November 7, and a day allotted for “any due replies” on December 12.
John Reed Stark, a cybersecurity consultant and former head of the SEC Office of Internet Enforcement, took to Twitter to express his views, stating that Binance’s allegations appeared “frivolous on its face” and resembled a display of “marketing theater.” His observations pointed out the judge’s unusually swift rejection of the motion, which did not demand any “response/opposition from the SEC,” thus sparing valuable time and effort.
Stark also warned that Binance’s motion might hasten actions taken against them by criminal authorities. While the future implications of this case remain to be seen, it sheds light on the various aspects associated with regulatory oversight and the role legal systems play in shaping the industry.
Source: Decrypt
